Calling
UK tenants – it's time to push for Berlin-style rent controls
Berlin’s
authorities, seeing the effect of spiralling rents in London, are
bringing in controls to ensure the city remains habitable for all. We
must do the same
Dawn Foster /
Wednesday 3 June 2015 13.08 BST /
http://www.theguardian.com/commentisfree/2015/jun/03/tenants-uk-berlin-rent-controls?CMP=share_btn_fb
Another win for
London’s residents: we’re now influencing global housing policy.
On 1 June, Berlin began enforcing rent controls, stipulating that
landlords may not charge over 10% more than the local average rent
for new tenants. The reason? “We don’t want a situation like in
London,” Reiner Wild, chair of the Berlin Tenants Association told
the Guardian. The pride! London’s housing system is now so
completely dysfunctional its reputation transcends borders.
Berlin’s residents
and politicians made it clear: the rent controls, which mimic ones
already in place for existing tenants, are absolutely necessary if
the city is to continue being habitable for all. When Ed Miliband
gingerly suggested during the election that tenants might need more
rights, and rent controls could be a way of achieving that, he may as
well have called for the mandatory sacrifice of first-born babies,
for all the paroxysms of the right and the landlord class.
Rent controls have a
fairly long tradition, with the most prominent having been set in New
York. During the first world war, rents were controlled across the
United States: New York maintained the controls from 1943 onwards to
stymie rapid inflation in the housing market. Those controls have
been phased out over the decades, with fewer than 2% of apartments in
New York now rent controlled – but just under half are rent
stabilised, which prevents the landlord from raising rent above a set
rate, and requires them to renew tenancies. This means that at least
some people can continue living in the city when, without such
regulation, landlords might have hiked the rates long ago.
London’s housing
system is now so completely dysfunctional its reputation transcends
borders
There are examples a
little closer to home of rent controls being used too. In Britain,
for example. Until the Housing Act 1988 was passed, Britain had a far
more regulated housing policy with regards to rent. Between the
second world war and the late 1980s, policies fluctuated, but tenants
could appeal to a rent tribunal if they felt their rent was unfair,
and local authorities had rent officers who looked into rents that
were raised above the stabilised rate.
But with the
introduction of buy to let, Margaret Thatcher clearly felt it was
important not to leave any avenue unexplored when it came to the
decimation of the housing system. Tenant rights were trampled by
rampant capitalism. As a result, many people simply can’t afford to
live in London and the south-east, even on average salaries.
London housing
rally: protesters gather at 'Homes for Britain' event
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A number of my
friends recently graduated from university, a few years later than I
did. Fine, upstanding citizens, they decided they wanted to
contribute to society and become teachers and nurses. While ordering
their graduation gowns, they were also scrabbling for jobs. The
problem, they found, was that jobs in London, where all their friends
lived, in the city they’d known for many years, offered salaries
that were certainly in line with nationally agreed pay scales – but
too low to live on. The issue was exorbitant, and fast-escalating
rents. To live within even an hour’s commute of the London jobs on
offer was impossible for a couple on starting salaries.
The strain of this
phenomena was shown a few days ago, when NHS trusts were upbraided
for paying agency fees for nurses they couldn’t afford to recruit.
If nurses don’t live nearby, agency staff are drafted in. With
hospitals struggling to recruit, care suffers, and costs rise,
undermining care even more. You can argue that if people can’t
afford to live in a city, they simply shouldn’t. But only if you’re
then happy to visit a hospital with no nurses, or have your child’s
school close for lack of teachers. If cities are not for all, they
cease to function.
It’s always worth
listening to who shouts the loudest against rent controls.
Unsurprisingly, it’s landlords. Naturally, they’re not in favour
of a policy which means the profit they cream off from tenants is
regulated. Chris Leslie, landlord, Labour MP, and shadow chancellor,
mused last week that he felt Labour hadn’t been kind enough to
landlords. Nonsense. It’s worth noting that fewer than 2% of people
in Britain are landlords, on average they have 50 times as much
wealth in assets as their tenants, and could happily cope with a drop
in income. For such a small proportion of the population, they’ve
been protected far too long. It’s time the UK’s hard-pressed
tenants clamoured for the same rights as their Berlin counterparts.
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